By Riad Beladi, International Editor and Analyst for the Retail Industry
Some supermarkets are winning while others are falling behind, and it is not by chance. In today’s hyper-competitive retail landscape, success is not determined by one factor alone. It is the result of a combination of leadership, pricing, communication, innovation, technology, and a deep understanding of consumer behaviour. This study explores why certain supermarkets manage to stay ahead, continually evolving, while others remain trapped in outdated models that no longer resonate with modern shoppers.
Geolocation, once a key advantage, is no longer a guarantee of success. Being in the right place helps, but it is not enough. The most successful retailers go beyond location. They understand their customers and offer not only products but experiences that are relevant, seamless, and often surprising. Retailers such as Tesco benefit from their strong presence across the country, offering a familiar and convenient shopping environment. However, even they must work to maintain relevance in a market where convenience is no longer a unique selling point but an expectation.
Price remains a powerful driver of consumer behaviour, particularly in times of economic uncertainty. Yet value goes beyond cost. Aldi and Lidl understand this well. They have built their identity around price, and their marketing reinforces this message consistently. Their advertising does not try to be everything to everyone — it simply says “we are cheaper,” and shoppers respond. But they also offer moments of surprise, such as the “middle aisle” specials or unexpected seasonal offers, creating both value and excitement.
In contrast, supermarkets like Asda seem caught in the past. Their stores and brand communication have remained largely unchanged for years. They offer familiarity, but little innovation. Sainsbury’s has attempted to pivot towards a more premium feel, but lacks standout ideas or memorable campaigns. It is not enough to quietly update ranges — customers today need to see bold moves, new launches, and feel that the store is evolving with them.
Marks & Spencer recently demonstrated how even a simple product, when presented with creativity, can become a national talking point. Their limited-edition strawberry sandwich captured attention across media and social channels. Many customers could not even find the item due to its scarcity, yet the buzz drove foot traffic. Once inside, many did the rest of their shopping there. This is not just about novelty — it is about creating a reason to visit, to talk, and to engage.
Advertising and communication are no longer restricted to billboards or TV. The supermarkets winning today understand how to speak across platforms. They know that Gen Z and younger millennials consume information differently — through TikTok, Instagram, and short, authentic, entertaining content. Traditional advertising still has a role, but if a supermarket is not producing social media content tailored to younger audiences, it risks becoming invisible to the next generation of shoppers. Some supermarkets still rely heavily on print flyers, while others are experimenting with viral challenges and influencer collaborations.
Leadership is another defining factor. The CEO’s vision and pace can shape a brand’s destiny. Supermarkets led by ambitious, agile, and data-driven executives tend to be the ones that innovate, adapt quickly, and stay in the media conversation. Retail is a fast-moving sector, and a risk-averse leadership approach often results in slow decline. The ability to make bold decisions, to invest in technology, and to reposition a brand when necessary, comes from the top.
Equally important is how a supermarket communicates with the media and with industry professionals. Some supermarkets ensure they are in the news frequently — not just for earnings or controversies, but for product launches, ethical sourcing, sustainability efforts, or innovative customer experiences. They treat media relations as part of their brand strategy. Others remain silent, making it easy for competitors to dominate the narrative.
Waitrose, for example, communicates well with its core clientele and delivers consistent quality, but it does not attempt to broaden its appeal too far. It has its loyal base and nurtures it carefully, with trust and service. However, its growth potential may be limited unless it starts engaging younger audiences in more dynamic ways.
Innovation and the use of technology remain key differentiators. From self-checkouts and app-based loyalty schemes to electronic shelf labels and AI-powered inventory management, supermarkets embracing these tools improve both efficiency and customer satisfaction. Those who fail to adopt them are slowly becoming irrelevant in the eyes of shoppers who are accustomed to frictionless digital experiences in all areas of life.
Ultimately, the difference between winners and losers in the supermarket industry comes down to mindset and execution. The winning supermarkets are proactive — they study their customers, test new formats, refresh product lines regularly, and communicate boldly across multiple channels. They are not afraid to make noise, to take risks, or to act like media companies as much as food retailers. They create reasons for people to visit, to stay, and to return.
Those who are losing are reactive. They wait. They repeat. They operate like they did ten years ago, and the world has moved on. In today’s market, opening the doors and hoping for footfall is not enough. Retail has become about curiosity, connection, and constant evolution. It is no longer just about what is on the shelves, but about how it’s presented, talked about, shared, and felt.
The conclusion of this study is clear: supermarkets that want to thrive must think like innovators, behave like entertainers, and execute like tech firms. It is not a matter of size or heritage, but of attitude. Only those that keep moving, listening, and communicating with clarity and creativity will define the future of food retail.